Oil Marketers Challenge N1,030/litre Petrol Price, PH Refinery Halts Activities

Oil Marketers Challenge N1,030/litre Petrol Price, PH Refinery Halts ActivitiesThe Port Harcourt Refining Company (PHRC) has clarified that its operations were not fully halted, but temporarily scaled down to facilitate essential upgrades. This clarification comes amid concerns from the Independent Petroleum Marketers Association of Nigeria (IPMAN) over the potential high cost of petrol produced at the facility.....KINDLY READ THE FULL STORY HERE▶

On Sunday, PHRC officials responded to claims by oil marketers, who suggested that the Nigerian National Petroleum Company Limited (NNPCL) was selling petrol from the refinery at N1,030 per litre—roughly N60 more expensive than petrol from the Dangote Refinery. While NNPCL denied these claims, it has yet to officially announce the price of petrol from the upgraded Port Harcourt refinery.

During a guided tour of the refinery, Moyi Maidunama, Executive Director of Operations at the Nigerian Pipeline and Storage Company Limited, assured journalists that operations were ongoing, though some output had been temporarily reduced to address technical issues. “The operations were not halted but scaled down for necessary upgrades,” Maidunama explained, adding that normal operations would resume soon. He noted that distribution was being managed using available loading arms.

PHRC’s Terminal Manager, Worlu Joel, confirmed that products, including Premium Motor Spirit (PMS), kerosene, and diesel, were still being distributed, despite a lower-than-usual turnout from tanker drivers. “We’ve already dispatched over 10 trucks today and expect to load at least 15 by the end of the day,” Joel stated.

PHRC Managing Director Ibrahim Onoja highlighted that significant upgrades were underway, including replacing outdated equipment to boost efficiency. “The plant is operational, and we are actively distributing products,” Onoja said.

However, IPMAN expressed dissatisfaction with the rumored pricing. Spokesperson Chinedu Ukadike warned that independent marketers would avoid purchasing from PHRC if the price of petrol remained at N1,030 per litre. “If the Port Harcourt refinery’s petrol price is truly N1,030, it is unacceptable to us independent marketers. We will not buy from them. We will buy where it is cheaper,” he stated, urging NNPCL to review its pricing strategy.

“We will wait for the price review, but for now, we will source from cheaper options,” Ukadike added.

NNPCL clarified that PMS from the Port Harcourt refinery is currently distributed exclusively through its retail outlets, with pricing subject to periodic adjustments based on operational considerations.

Industry experts and organizations also weighed in on the situation. The Crude Oil Refinery Owners Association of Nigeria (CORAN) raised concerns over the blending process used at the refinery. CORAN’s National Publicity Secretary, Eche Idoko, explained that blending naphtha with cracked C5 to produce petrol could lower production costs but might have environmental and sustainability implications if blending components are imported.

Energy consultant Henry Adigun estimated that the blended PMS from PHRC should cost between N860 and N870 per litre. He noted that while the refinery is not yet producing petrol to standard specifications, blending is a common practice globally. “Blending is normal, but the current phase of the Port Harcourt refinery is not producing petrol without blending. This stage is crucial in determining the pricing,” Adigun said.

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